Is it cool to use FlxState for EVERY game object?

I'm uncertain how to go about things now that I've learned FlxSprite is not a displayObject type thing.

Can someone describe to me how HaxeFlixel wants things done? Just a bunch of factorys in the playstate? What if I'm dealing with multiple coordinate systems that would benefit from nested Display objects?

Right now I'm just using a flxState as a container for every game object. It does not have its own coordinate space.